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Promoting light freight

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Promoting light freight on the tidal River Thames

IWA has long campaigned for the promotion of freight on the inland waterways. It is an important way in which our rivers and canals can contribute towards reducing emissions and pollution, and it’s vital for the people whose livelihoods depend on it.

Earlier in the year, we held a meeting with the DfT Maritime Minister, Robert Courts, which came about as a follow-up to the APPGW meeting on freight, to highlight the opportunities and the challenges faced by waterways freight. More recently, we attended a water-freight seminar hosted by the Company of Watermen & Lightermen of the River Thames, which provided an opportunity to hear from and talk to the Port of London Authority, Cross River Partnership, Logistics UK and the Thames Estuary Growth Board. We will work with all these organisations and others to promote light freight on the tidal River Thames.

Over 60% of goods transported on the inland waterways are on the Thames and much of this is concentrated on the tidal river through London. In recent years, the Thames has seen between 3m and 4m tons of bulk cargo carried on its waters annually. However, this freight is made up primarily of construction materials such as sand and aggregates, as well as waste from the city’s very active redevelopment sites. At present, there is very limited transportation of light freight goods.

Advantages of river transport

As an alternative to road transportation, the advantages of harnessing the Thames through the bustling capital are well recognised. There is little congestion on its waters and fewer delays caused by external factors, such as traffic or road closures. Indeed, according to the Port of London Authority, which administers the river through the capital, there are only two things that limit river freight in London: fog and the closure of the Thames Barrier. As such, goods can largely be relied upon to arrive on time.

The other key advantage is sustainability. Carrying by boat is far more energy efficient than any vehicular alternatives and so reduces air pollution. Energy consumption per km/tonne of goods moved by waterways has been calculated to be about 17% of that of road and 50% of rail transport, and trials are currently underway to further reduce emissions of boats. Most of the Thames operators use HVO (hydrotreated vegetable oil), and the PLA is also transitioning to use this more sustainable alternative to diesel fuel. It also substantially reduced NOx and particulate emissions. IWA’s Sustainable Boating Group has been researching this fuel and concurs with the PLA that this is the best medium-term solution to improving the sustainability of the existing fleet.

Over 60% of goods transported on the inland waterways are on the Thames.

Challenges for Light freight operators

So far, so good, but there are challenges, particularly for smaller companies. At present, the fixed costs of harnessing river transportation are relatively high, so an operation needs to be big enough to benefit from economies of scale. In future, there may be grants available to smaller enterprises, as well as additional carbon taxes that drive users away from road vehicles and towards boats. However, it currently still costs more per parcel to deliver on the river than by road. One idea to reduce this expense is for like-minded businesses to form partnerships to consolidate delivery costs.

But despite some of the cost issues, the range of organisations using the river is beginning to expand. In June 2021, Guy’s & St Thomas’ Trust began a trial transporting essential hospital equipment from Dartford, Kent, to Butler Wharf in Southwark, a move which PLA planning and environment director James Trimmer described as a “major leap forward” for the river.

Furthermore, logistics company DHL successfully trialled parcel deliveries on the river in 2018, leading to the establishment of its full river service in 2020. The last stage of delivery is carried out by bicycle couriers, which demonstrates that deliveries are not limited to waterside premises. The river through central London has a large number of piers, which means goods can be taken into the capital by boat for last-mile deliveries using a range of infrastructure including cycleways and consolidation hubs.

One initiative is Pedal Me’s cargo bikes and trailers, which can carry up to 300kg and are shown to be 25% to 50% faster than vans in urban areas. Another cost-effective option is ‘walking freight’, while electric vans are also used for larger cargoes.

In the short to medium term, it is unlikely that river transport will beat road transport on cost. As such, we have the challenge of dispelling doubts and myths about boat carrying, while emphasising its benefits of sustainability and reliability. The success of ongoing and future pilots, combined with future Government initiatives, will enable more businesses to run trials, therefore reducing costs through economies of scale and increasing river freight. This activity will run alongside improved infrastructure such as consolidation hubs in places like Tilbury and Dartford, and east of Teddington Lock, alongside pier improvements in central London.

Freight traffic underway in the heart of the city and passing HMS Belfast.

Feasibility study

A feasibility study on light freight on the Thames, recently carried out on behalf of the Thames Estuary Growth Board and PLA, identified “enormous potential for handling large-scale light traffic”. The report went on, “While there is limited activity at the moment, our research indicates that, at the right scale, [river freight] could easily be competitive with road freight. Moving millions of parcel deliveries from the road to the river would deliver new jobs, reduce congestion and push London forward on the path to net zero.”

The findings for the report recommended the establishment of a coordinating body with political backing to help facilitate riverside developments, and discussions with “large, innovative online businesses” to help achieve 20m parcel deliveries a year – a figure, which, it says, will begin to make Thames light traffic competitive. As well as parcels, the report also states that there is much potential for carrying food, beverages and retail goods. It further suggested likely destinations in Central London and identified potential origin points including the Port of Tilbury, Dagenham International Ferry Terminal, a new wholesale market in Barking and Wandsworth Riverside.

On the report’s findings, Perry Glading, Thames Estuary Growth Board deputy chair and lead on light freight, said, “This is an opportunity we cannot afford to miss, as we continue to strive towards net zero and deliver the world’s cleanest greenest estuary.” This enthusiasm was shared by the PLA, with James Trimmer saying, “The report shows joining the dots between port and consumer is a very real possibility and one which will deliver manifest environmental and wider social benefits. At the PLA we’re working daily to turn this potential into reality. The report is being shared with businesses to develop the case for investment and all levels of Government to garner support.”

IWA will continue to work with other organisations to promote freight on the Thames and on all waterways where transporting goods by water is economical.

A barge loaded with concrete segments to line tunnels being built under London.

High-speed river transfers are part of a parcel-delivery service launched in 2020 by DHL Express and Thames Clippers Logistics.

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